How are we all? I am planning to rent my PPoR in Melbourne metro. Tenant might move in 2nd or 3rd week of June. How do we tackle land tax in this situation? It will just be 2 or 3 weeks remaining in the FY when property becomes an IP from a PPoR. Do I even need to bother paying? Also I have general questions for land tax in VIC a. How to find out how much land tax is? b. When is it due (starting of FY or end) c. To whom it needs to be paid Appreciate your help.
You should seek specific legal advice as a lot depends on various factors. Generally there is no pro rata of land tax. It is assess on land on a specific date which is 1 July in VIC. a LAND TAX ACT 2005 - SCHEDULE 1 assuming you are not acting as trustee b LAND TAX ACT 2005 - SECT 9 When must land tax be paid? c SRO
Thanks Terry, mine is an individual ownership (not trustee). SRO website talks about land tax assessment. How do I get that land tax assessment notice in the first place? The enigma I had was if I will be asked to pay full year land tax for just renting out my property for last 2 weeks of June, I rather delay that and wait till the 1st of july 2018 to rent it out. I think the regulation of land tax is not clear if someone wants to convert their PPoR to IP. I am hoping other members on the forum who had a similar experience can shed light.
You should register for land tax. I think the regulation is crystal clear. The SRO doesn't arbitrarily make up the laws, but they apply the laws that are made by parliament. Without checking I think you will be up for the full year's land tax, if over the threshold, which could possibly be avoided by delaying the moving out of your property. Seek specific legal advice as I haven't checked the act.
Thanks Terry for your suggestion. Site value is 400k, so its above the threshold. I need to think about it more deeply now. Not sure how fair it is to slap people with a year worth of land tax for something that should be only one week. Hats off to the people sitting in Parliament who make such laws.
